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RE Royalties Announces $5.5 Million First Tranche Closing of Inaugural Green Bonds
All amounts in Canadian dollars unless otherwise stated NOT FOR DISTRIBUTION TO U.S. NE...
About this update from Re Royalties Ltd.
[{"type":"text","content":"RE Royalties Announces $5.5 Million First Tranche Closing of Inaugural Green BondsAll amounts in Canadian dollars unless otherwise statedNOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION TO THE UNITED STATESVANCOUVER, BC / ACCESSWIRE / October 2, 2020 / RE Royalties Ltd. (TSXV:RE) (\"RE Royalties\" or the \"Company\"), a global leader in renewable energy royalty-based financing, today announced the successful closing of the first tranche (the \"First Tranche\") of its brokered private placement of Series 1-2020 First Ranking Senior Secured Green Bonds (the \"Green Bonds\"), maturing October 2, 2025 (the \"Series1-2020 Maturity Date\") for an aggregate gross proceeds of $4,947,000, and the concurrent closing of a non-brokered component for gross proceeds of $505,000.In the First Tranche, the Company has issued 5,452 Green Bonds with a principal amount of $1,000 per Green Bond for aggregate gross proceeds of $5,452,000. Each Green Bond will bear interest at a rate of 6%, per annum payable quarterly, and is senior secured against the Company's portfolio of royalty and loan investments.Integral Wealth Securities Limited acted as agent (the \"Agent\") pursuant to an agency agreement entered between the Company and the Agent with respect to the Green Bond offering. In connection with the closing of the First Tranche, the Company paid the Agent a cash fee of $197,880 (the \"Agent's Fee\") and a corporate finance fee of $10,200. The Company also issued to the Agent 223,173 warrants (the \"Agent's Warrants\") under the Offering and corporate finance warrants of 22,782. Each Agent's Warrant will entitle the holder to acquire one common share of the Company at an exercise price equal to $1.33 for a period of 24 months from the closing date. The Company also paid a Finder's Fee of $10,000 in connection with respect to the non-brokered component of the Offering.Net proceeds from the First Tranche of the Green Bonds will be utilized to finance or re-finance renewable and sustainable energy projects that will reduce or offset green house gas (GHG) emissions and assist in mitigating the impact of climate change.\"Our first Green Bond issuance was very well received, and we are pleased to share our vision of building a more sustainable future with our new Green Bond investors,\" said Bernard Tan, Chief Executive Officer at RE R...